BAKU, Azerbaijan, May 2. The potential of Trans-Caspian International Transport Route (TITR) has not yet been unlocked, Kazakh Ministry of Industry and Infrastructural Development told Trend.
According to the ministry, so far meetings have been held with the transport departments, also with the leadership of the railways and seaports of Georgia and Azerbaijan, during which an agreement was reached on a mutual increase in transit cargo and the creation of favorable conditions for reorienting additional cargo flows to TITR.
"Based on the results of the meetings, the Trans-Caspian East-West Middle Corridor declaration was signed, which is aimed at forming a through tariff, establishing a single logistics supply chain and attracting road carriers to TITR route," the ministry said.
In addition, it was noted that the declaration, taking into account the positive experience of Russia’s United Transport and Logistics Company – Eurasian Rail Alliance (UTLC ERA) JSC, provides for the creation of a Joint Logistics Company between Kazakh Railways (NC KTZ JSC), Azerbaijan Railways JSC (ADY) and Georgian Railway LLC, which will consolidate tariff conditions and contribute to an increase in traffic volumes along the TITR route.
"In turn, to increase the potential of the route, the ministry plans to create a "container hub" in Kazakh port of Aktau. In addition, it is necessary to involve world port and container operators, such as MSC, Maersk. Singapore’s company PSA International, one of the world’s leading port groups, is also interested in the project," the ministry said.
Ministry emphasized that the potential of TITR has not yet been unlocked, Kazakh ports are only 23 percent loaded.
"The current capabilities of the ports make it possible to ensure the reorientation of about 7 million tons of cargo in the direction of TITR (4 million dry-cargo ships and 100,000 twenty-foot equivalent unit (TEU) in containers),” ministry noted.
“The above measures will allow the reorientation of an additional 4 million tons of export cargo by the end of 2022. Implementation of the "container hub" project based on Aktau port will increase container traffic from 35,000 to 300,000 TEUs by 2025," the ministry added.